Sparrow Board of Directors approved a collection policy at its regular board meeting on Nov. 18, 2009. This policy, now in force, spells out the procedures for the dating of payments of assesments and association fees, payment deadlines, fees /penalties for late payments, returned check charges, and collections procedures, from initial late notices to legal measures including leins and foreclosure activities. The collection policy is reproduced below, and may be downloaded in formatted form as a pdf from
http://sparrowcondos.com/condo-documents.phpSparrow Condominium Association, Inc.
Collection Policy
Adopted November 18, 2009The following resolution has been adopted by Sparrow condominium Association, Inc. (the “Association”) pursuant to Florida law, at a meeting of the Board of Directors.
RECITALS
A. The Association is charged with certain responsibilities regarding the care, maintenance and service of certain portions of the units and common elements.
B. The Association must have the financial means to discharge its responsibilities.
C. The Board of Directors has a responsibility to pursue collection of assessments and other charges from owners pursuant to Sparrow Condominium Association’s Declaration and Bylaws of the Association. The Association’s Declaration was recorded in Book 879, pages 404-494 in the real property records of Alachua County, Florida. A First Amendment to these Declarations was also recorded in the real property records of Alachua County, Florida on November 13, 1986, reception No. 910412.
D. The Board of Directors of the Association desires to adopt a uniform and systematic procedure to collect the assessments and other charges of the Association.
E. The Board of Directors believes that it is in the best interest of the Association to refer delinquent accounts promptly to an attorney for collection so as to minimize the Association’s loss of assessment revenue. The Board of Directors will retain an attorney with experience in representing homeowner associations in collections and other matters.
NOW, THEREFORE, BE IT RESOLVED that the Association does herby adopt the following procedures and policies for the collection of the assessments and other charges of the Association:
1. Due Dates. The monthly assessment and other charges as determined by the Association and as allowed for in the Declaration shall be due and payable on the 1st day of each month. Assessments or other charges not paid in full to the Association within ten (10) days of the due date shall be considered past due and delinquent. Any charges not paid in full to the Association within 10 days of the due date shall incur late fees and interest as provided below.
2. Receipt Date. The Association shall post payments on the day that the payment is logged in as received by the Association. The association policy is to record payments with one person, other than Board President, opening mailed or dropped-off payments, and a second person (witness) logging the Owner name, payment amount and payment date in a logbook. If an Owner’s payment is logged in after a due date because of a delay in opening or reviewing payments, the payment will be posted on the previous date that payments were recorded by the Association, so that an owner’s payment is not mistakenly recorded as past due.
3. Late Charges on Delinquent Payments. The Association shall impose a $25 per month late charge to each Owner who fails to timely pay his/her monthly assessment or other required payment within 10 days of the due date. “Per month late charge” means that for each ensuing month that monthly assessment(s) or other required payments are not paid, an additional $25 late charge will be imposed. This late charge shall be a “common expense” for each delinquent Owner. For any Owner who fails to timely pay their monthly assessment or other required payment within 45 days of the original due date, the Association will additionally impose interest starting from the original past due date (11th day of the month) at the rate of 10% simple interest per annum. Interest is applied only to original assessment or other required payment and is NOT applied to late charges or previously accrued interest charges.
4. Personal Obligation For Late Charges. The late charge shall be the personal obligation of the Owner(s) of the unit for which such assessment or other charge is unpaid. All late charges shall be due and payable immediately, without notice, in the manner provided by the Declaration (and set forth herein) for payment of assessments.
5. Returned Check Charges. In addition to any and all charges imposed under the Declaration, Articles of Incorporation and Bylaws, the Rules and Regulation of the Association, or this Resolution, a returned check fee shall be assessed against an Owner in the event any check or other instrument attributable to or payable for the benefit of such Owner is not honored by the bank or is returned by the bank for any reason whatsoever, including but not limited to insufficient funds. The amount of the returned check fee, per Florida Statute 68.065 will be as follows: $25, if the face value does not exceed $50; $30, if the face value exceeds $50 but does not exceed $300; $40, if the face value exceeds $300, or 5 percent of the face amount of the check, whichever is greater, plus any related bank fees charged to the Association. Such returned check charge shall be due and payable within 30 days upon demand of written notice. If principal amount owed plus fees and costs are not received within 30 days, the Association may file suit to recover funds plus penalties as outlined in FS 68.065. Notwithstanding this provision, the Association shall be entitled to additional remedies as may be provided by applicable law. Returned check charges shall be the obligation of the Owner(s) of the unit for which payment was tendered to the Association for payment of sums due under the Declaration, Articles, Bylaws, Rules and Regulations, or this resolution after the date adopted as shown above.
If two or more of an Owner’s checks are returned unpaid by the bank within any (fiscal) year, the Association may require that all of the Owner’s future payments, for a period of one (I) year, be made by certified check or money order. This returned check charge shall be in addition to any late fees or interest incurred by an Owner. Any returned check shall cause an account to be past due if full payment of the dues, assessment, installments, or other charges is not made within (10) days of the due date.
6. Attorney Fees on Delinquent Accounts. As an additional expense permitted under the Declaration and by Florida Law, the Association shall be entitled to recover its reasonable attorney fees and collection costs incurred in the collection of assessments or other charges due the Association from a delinquent Owner.
7. Application of Payments. In the event that an Owner’s account is turned over to attorney for collection, all sums collected on a delinquent account shall be remitted to the Association’s attorney until the account is brought current. All payments received on account of any Owner or Owner’s property (hereinafter collectively “Owner”) shall be applied to payment of late charges, returned check charges, lien fees and other costs owing or incurred with respect to such Owner pursuant to the Declaration, Articles, Bylaws, Rules and Regulations, or this Resolution, prior to application of the payment to dues, assessment, installments, or other charges due or to become due with respect to such Owner.
8. Collection Process.
(a) After assessment or other charges due to the Association become more than 30 days delinquent, the Association or the Association’s accountant is directed to send a written notice (“First Notice”) of non-payment, amount past due, and notice that interest and late fees have accrued and request for immediate payment.
(b) After an assessment or other charges due to the Association becomes more than 60 days delinquent, the Association or the Association’s accountant is directed to send a second written notice (”Second Notice”) of non-Payment, amount past due, and notice that interest and late fees have Accrued and request for immediate payment.
(c) After an assessment or other charges due to the Association becomes more than 90 days delinquent, the Association’s President is directed to file a lien and turn the account over to the Association’s attorney(s) for collection. Upon receiving the delinquent account, the Association’s attorney shall send a letter to the delinquent Owner demanding immediate payment for past due assessments or other charges due. Upon further review, the Association’s attorney(s) may file a summons and complaint with the court of jurisdiction. If a judgment or decree is obtained, including without limitation a foreclosure action, such judgment or decree shall include reasonable attorney’s fees together with the cost of the action and any applicable interest.
10. Collection Procedure/Times Frames. The following time frames shall be followed for use in the collection of the monthly assessments and other charges.
Due date……………………………………………………………………………………. 1st day of the month due
(Date payment due)
Past due date……………………………………………………………………………. 10 days after due date
(Date payment is late if not received on or before that date)
First Notice……………………………………………………………………………….. 30 days after due date
(Notice that late charges have accrued)
Interest at 10% per annum starts accruing on principal…………….45 days after due date
owed on assessments and other required charges
Second Notice…………………………………………………………………………… 60 days after due date
(Notice that additional late charge and Interest
have accrued, notice of Intent to file lien)
Delinquent account turned over to ………………………………………………….. 90 days after due date
Association’s attorney; Lien filed;
Demand letter sent to Owner. The attorney is to consult with the
Association at all times, to determine if payment has been arranged or
what collection procedures are appropriate.
11. Certificate of Status of Assessment. The Association shall furnish to an Owner or such Owner’s designee upon written request, first class postage prepaid, Return receipt, to the Association’s accountant, a written statement setting forth the amount of unpaid assessments or other charges currently levied against such Owner’s property for a $10 fee. However, if the account has been turned over to the Association’s attorney, such request shall be handled through the attorney.
12. Bankruptcies and Foreclosures. Upon receipt of a bankruptcy filing by an Owner, or upon receipt of a notice of foreclosure by any holder of an encumbrance against any unit within the Association, the President shall advise the Association’s attorney of the same and turn over same to the Association’s attorney. The time limitations in this collection policy do not apply if the parcel is subject to a foreclosure action or forced sale of another party, or if an owner of the parcel is a debtor in a bankruptcy proceeding. The Association shall be entitled to defend said foreclosure action and to collect on the outstanding assessment(s).
13. Mailing Address and Use of Certified Mail/Regular Mail. Collection demand Letters or other notices being sent to a delinquent Owner shall be sent to the address registered with the Association as required by the Declaration. In the event the Association shall cause a collection or demand letter or notices to be sent to a delinquent Owner by regular mail, the Association shall retain copies of correspondence. However, failure to send such letters or notices by either registered or certified mail does not constitute a waiver by the Association, or a defense to, any assessments, late fees, or other charges due to the Association.
14. Referral of Delinquent Accounts to attorney. Upon referral to the association’s attorney, the attorney shall take all appropriate action to collect the accounts referred. After account has been referred to an attorney, the account shall remain with the attorney until the account has been settled, has zero balance or is written off. The attorney is authorized to take whatever action is necessary In consultation with the president of the Board of Directors, believed to be in the best interest of the association, including, but not limited to:
a. Filing of a suit against the delinquent owner for a money judgment;
b. Instituting a judicial foreclosure action of the Association’s lien;
c. Filing necessary claims, documents, and motions in bankruptcy court in order to protect the Association’s interest;
d. File a court action seeking appointment of a receiver.
All payment plans involving accounts referred to an attorney for collection shall be set up and monitored through the attorney.
15. Appointment of a Receiver. The Association may seek the appointment of a receiver if an Owner becomes delinquent in the payment of assessments pursuant to Florida Law. A receiver is a disinterested person, appointed by the court, that manages the rental of the property, collects the rent and disburses the rents according to court order. The purpose of a receivership for the Association is to obtain payment of current assessments; and prevent the waste and deterioration of the property.
16. Judicial Foreclosure. The Association may choose foreclosure on a lien in lieu of, or in addition to suing an Owner in the court for a money judgment. The purpose of foreclosing is to obtain payment of all assessments owed in situations where either a money judgment lawsuit has been or is likely to be unsuccessful or other circumstances favor such action.
17. Waivers. The Association is herby authorized to extend the time for the filing of lawsuits and liens, or otherwise modify the procedures contained herein, as the Association shall determine appropriate under the circumstances.
18. Notification to and Communication with Owners. The Association shall, upon request, provide all owners with a copy of this resolution which shall become effective upon its adoption. All communication with delinquent Owner shall be handled through the Association’s attorney, once the matter has been referred to the attorney. Neither the President, Accountant, or any member of the Board of Directors, or any Association employee or volunteer, shall discuss the collection of the account directly with an Owner after it has been turned over to the Association’s attorney unless the attorney is present or has consented to the contact.
19. Ongoing Evaluation. Nothing in this Resolution shall require the Association to take specific actions other than to notify the Owners of the adoption of the policies and procedures. Once an owner’s account is turned over to the Association’s attorney, all communication regarding the account must be made through the attorney. However, the Association has the option and right to continue to evaluate each delinquency on a case-by-case basis.
20. Defenses. Failure of the Association to comply with any provision in this Collection policy shall not be deemed a defense to payments of assessment fees or other charges, late charges, attorney fees and/or cost as described and imposed by this Collection Policy.
21. Amendment. This Collection Policy maybe amended from time to time by the Board of Directors.
IN WITNESS WHEROF, the undersigned certify that this Resolution was adopted by the Board of Directors of the Association this 18 day of November, 2009.
_____________________________________ _____________________________
Afsheen Akbar, Secretary Starling S. Hunt, President
Sparrow Condominium Association Sparrow Condominium Association
